Prof G Markets · Monday, August 3, 2026
The recent surge in AI stocks appears to be unwinding, causing significant losses across the semiconductor sector. Companies like Micron, AMD, and TSMC have collectively lost approximately $1 trillion in market value in the past week, not due to poor earnings, but a general cooling of AI-related market euphoria.
“The AI trade, as we've been talking about throughout the week, appears to be unwinding.”
“It's not just Samsung and SK Hynix. There's a lot of the other semiconductor names like Micron and AMD and TSMC, chip stocks lost about $1 trillion in value in the past week.”
“Not because of anything that happened with their earnings reports, which were generally pretty good, but the euphoria is beginning to steam because there are these concerns that we have discussed at length, like the extreme debt issuance, like the circular financing, like the SPV mania and all of that stuff.”